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The world’s airline industry is heading for more consolidation because of the global recession and drop in air travel, according to the chief executive officer of Etihad Airways, the United Arab Emirates’ state-owned airline.

Combinations such as Air France-KLM Group, Europe’s biggest airline, will probably become more common as companies seek to cut costs, James Hogan said. Etihad, based in Abu Dhabi, will seek ways to work more closely with Qantas Airways Ltd., Australia’s largest carrier.

“‘We are already seeing a number of airlines under huge pressure,’” Hogan said. “‘Airlines will have to make decisions as any other business does with regard to their network, their fleet and whether they rationalize, consolidate or continue to invest in expansion.’”

source: Bloomberg

Europe’s biggest travel firm, TUI Travel, is to take a stake in German airline Air Berlin.

The firm will pay 28.5m euros (£26.5m) for a 19.9% holding in Air Berlin as part of a cross-shareholding agreement.

The deal aims to lower TUI’s running costs and reduce the number of flights they run to European destinations, which has been one of its aims since the merger.

source: BBC

Trials of a new generation of scanners are due to take place at a number of airports across the EU next year.

The move to scrap the restrictions, follows talks with the industry and pressure from the aviation trade body, the International Air Transport Association.

It is now hoped that the restriction will start to be removed in six months to a year’s time.

For more than two years passengers have had to display their toiletries in a clear plastic bag before being allowed through security.

source: telegraph.co.uk

Germany’s second largest airline Air Berlin recorded moderate growth of only 1% over 2007. However, the airline remains committed to further growth in 2009 with new routes coming on line. Air Berlin will fly from Hanover to Stockholm Arlanda, as well as between Stuttgart and Nice. It will also boost its presence at Berlin Tegel with more frequencies to Nuremburg.

source: traveldailynews.com

The Ufo trade union that represents staff at German airline Lufthansa voted Monday in favour of a possible open-ended strike to press demands for a 15-percent pay increase.

The vote was approved by a 96 percent majority according to a statement posted on the union’s Internet site but only backed the principle of a strike, not immediate action.

Ufo repeated recently that it favoured talks with Lufthansa to a walk-out.

source: The Associated Press

Ambitious regional airline Air Southwest said its new direct air link from the Westcountry to the heart of the City of London could be the first in a string of new domestic and European flights.

The firm yesterday announced a recession-busting twice-daily service from Newquay and Plymouth to City Airport, near east London’s Docklands business district.

source: thisiswesternmorningnews.co.uk

Based on a poll of 2,000 British consumers, PwC notes that people were increasingly unwilling to commit to a holiday months ahead, even though they were still determined to take a holiday.

The PwC poll, however, indicated that people were preparing to wait for the late deals, which were performing well. Industry is doing its best to reverse the trend with exclusive deals, reduced capacity and increased differentiation in their product.

Consumer willingness to downgrade, but not cancel, their holidays was a sign that people looked forward to escape the recession, offering a sign of hope for the travel industry.

source: DI-VE

At their annual Board Meeting, the CEO’s of the Star Alliance member airlines have voted to accept the application of Brussels Airlines to become a future member of the alliance.

Brussels Airlines is the Belgian airline offering the widest choice of flights to and from the “capital” of Europe. With a fleet of 45 aircraft the airline operates some 300 daily flights to 55 European airports and also serves 15 African destinations.

source: finchannel.com

Ryanair chief executive Michael O’Leary insisted Thursday he’s serious about making passengers pay for the right to relieve themselves on flights ” and is flush with interest in the idea of mounting credit card-operated toilets.

O’Leary, whose Dublin-based airline has pioneered the practice of filling air travel with extra charges, divided opinion last week by suggesting that his next target would be coin-operated toilets. Aviation analysts and the traveling public alike couldn’t tell whether O’Leary ” a cut-throat operator with an entertainingly bombastic style ” was poking fun at his own reputation.

source: iht.com